CHAPTER 3

RESULTS AND DISCUSSION

This chapter presents the result of the study, analysis and interpretation of the data on the
implementation of the Costumer Loyalty and Service Quality KST Multipurpose Cooperative. The
sequence of data presentation is based on the statement of the problem in Chapter 1.

Level of Customer Loyalty in terms of Service Quality

Displayed in Table 2 is the customer loyalty in terms of service quality. As shown in the table that the
staff is ready to responds to customer’s inquires got the highest mean of 4.47 with the descriptive
equivalent of always. This indicates that the costumer always manifested 4.26. While the staff gives
prompt service to the customers got the lowest mean score of 4.13 with the descriptive equivalent is
always which means that the costumer always manifested.

As we gleaned from the table that most of the costumer observe the cleanliness in the fast food chain
because our restaurant’s cleanliness should be a top priority when it comes to running your restaurant.
Even if you have the tastiest food in town, failing at restaurant cleanliness will surely steer away
customers. It can be a nightmare for guests to go into a restaurant and experience trash in their food, or
even getting food poisoning the day after eating at your restaurant.

Table 2. Level of Customer Loyalty in terms of Service Quality

Item

Mean

Standard

Deviation

Standard

Deviation
1

The staff is ready to responds to customer’s inquires

4.47

0.70

Always

The fast food restaurant serves the food as the promised time

4.14

0.76

Always

The staff makes the customer feel safe in the transactions

4.30

0.73

Always

The staff gives prompt service to the customers

4.13

0.63

Always
5

The staff gives the customer individual attention

4.28

0.79

Always

Overall

4.26

0.73

Always

Customers hate waiting indefinitely, people are busy and do not come to your company or service to
spend all their time. Some service representative just find delight in keeping staff waiting. This creates a
very negative impression about our brand and our service. Service quality is an important outcome of
comparing customer expectations before and after their service experience. When customers consider
that their expectations of service performance match their perception of service, this situation can lead
to inducing the notion of service quality Gronroos (2017).

The perception of quality is the level of service that the customer subjectively qualifies as close to their
experience of the service. The customer perceives the services according to what quality means to him
and to what extent he is satisfied. On the other hand, customer expectations are the level of service
they expect; Likewise, this expectation level is different for each customer Schez & Sanchez (2016).

Displayed in Table 3 is the customer loyalty in terms of food quality. As shown in the table that the
order is taken promptly and correctly got the highest mean of 4.50 with the descriptive equivalent of
always. This indicates that the costumer always manifested 4.42. While the foods are just the right
temperature got the lowest mean score of 4.35 with the descriptive equivalent is always which means
that the costumer always manifested.

As we gleaned from the table in terms of food quality have positive and significant effects on customer
satisfaction and loyalty. The effects of perceived quality on customer satisfaction and loyalty could vary
depending on the customer's perceptions of the dining atmospherics.

Table 3. Level of Customer Loyalty in terms of Food Quality

Item

Mean

Standard

Deviation

Standard

Deviation

The food is in desirable taste

4.40

0.72

Always

The order is prepared and served promptly

4.39

0.71

Always
3

The foods are freshly served

4.40

0.75

Always

The foods are just the right temperature

4.35

0.69

Always

The order is taken promptly and correctly

4.57

0.64

Always

Overall

4.42

0.70

Always
Customer is satisfied at a fast food restaurant experience, however, the customer’s family and friends
do not share the same satisfying experience. Food quality is acknowledged as a basic component of the
restaurant’s overall experience to affect consumer revisit intention. Food quality plays a central role in
gastronomy. Food quality is crucial to satisfy consumer needs. Food quality is a subjective dimension
and varies from person to person with many associated components such as taste, food presentation,
food temperature, healthy choices and freshness Chamhuri & Batt, (2015).

Food quality is primarily important for improving overall satisfaction and is an important factor in
customer dining experience and is associated with customer satisfaction (Namin, 2017). Recent studies
in fast food restaurants have found that food quality is an important factor in customer satisfaction
Lefrid, 2021 et al (2019).

Food quality has a significant impact on customer satisfaction and loyalty. Food quality based on price
and satisfaction levels based on service quality differ significantly between genders, showing that there
is gender moderation in food consumption.

Table 4. Level of Customer Loyalty

Indicators Mean Standard Qualitative

Deviation Description

1. Service Quality 4.26 0.73 Always

2. Food Quality 4.42 0.70 Always

Overall 4.34 0.72 Always

As you can see in the Table 4, out of all items, Service Quality got the highest mean of 4.26
which means a descriptive equivalent is always. This means that the satisfaction of the customer is
always manifested.

On the on the hand, Food Quality item got the lowest mean of 4.42 which has a descriptive equivalent is
always. This means that the satisfaction of the customer is always. The affirms the theory, in KST
restaurant is one of the fastest growing in the business which aims to satisfy the customer in terms of
services offered. Satisfied customers would return to purchase and spread positive word of mouth
(Pham & Ahammad, 2017) thus greatly influencing customer loyalty (Choi & Kim, 2013). It is therefore
helpful to identify determinants of customer satisfaction to improve company performance.
Displayed in Table 5 is the customer satisfaction in terms of Physical Enviroment. As shown in the table
that the tableware is clean and well arrange got the highest mean of 4.60 with the descriptive
equivalent of always. This indicates that the costumer satisfaction always manifested 4.31. While the
lighting tempts the customer to stay longer in time got the lowest mean score of 4.05 with the
descriptive equivalent is always which means that the costumer always manifested.

As we gleaned from the table in terms of physical environment have positive and significant effects on
customer satisfaction and loyalty. The physical environment in restaurants has a significant impact on
financial performance, customer retention, and customer satisfaction Githiri (2017). Tuzunkan and
Albayrak (2016) stated that the dimensions of the physical environment in restaurants include wait staff,
facility aesthetics, layout, ambiance, table arrangement, and lighting.

Table 5. Level of Customer Satisfaction in terms of Physical Environment

Item

Mean
Standard

Deviation

Standard

Deviation

The menu is readable

4.57

0.70

Always

The tableware is clean and well arrange

4.60

0.57

Always

The place gives a relaxing atmosphere or ambiance

4.26

0.73

Always

The furniture gives excitement and desire to return

4.08

0.82

Always

The lighting tempts the customer to stay longer in time

4.05

0.73

Always

Overall

4.31

0.71

Always

Discovered that not only the quality of food and service but also the physical environment of the
restaurant influences a visit or repeat visit to a restaurant Mahalingen et al (2016). Seo et al. (2015)
found that the physical environment has a positive effect on customer retention, but that brand image
does not play a mediating role in this effect.

As a result of their study of a retail industry product, Messaoud and Debabi concluded that the
atmosphere factor did not have a significant impact on loyalty (2016). The Effect of the Physical
Environment on Consumer Emotions and Consequential Behavior (Choi and Kandampully, 2018).
However, place attachment needs to be applied in the restaurant environment, as according to Kim and
Stepchenkova (2017), atmospheric service establishments such as restaurants can create a sense of
place and foster customer attachment to a particular environment. In restaurants, the physical
environment has a significant impact on customer success and repurchase intentions. Customers visit
restaurants for family bonding, rest and relaxation.

Displayed in Table 6 is the customer satisfaction in terms of Responsiveness. As shown in the table that
the staff gives service in competent and efficient manner got the highest mean of 4.23 with the
descriptive equivalent of always. This indicates that the costumer satisfaction always manifested 4.06.
While the staff members are both able and willing to give you information about menu got the lowest
mean score of 3.96 with the descriptive equivalent is always which means that the costumer always
manifested.

As we gleaned from the table in terms of physical environment have positive and significant effects on
customer satisfaction and loyalty. Having employees available when needed is also a component of
responsiveness. Having employees available when customers need them shows how responsive
employees are. This would increase a positive perception of the company's service quality and
consequently customer satisfaction (Saghier, 2015).

Table 6. Level of Customer Satisfaction in terms of Responsiveness

Item

Mean

Standard

Deviation

Standard

Deviation

The staff gives service in competent and efficient manner

4.23

0.76

Always

2
The staff helps each other during busy time

4.01

0.82

Always

The staff accommodates and provide timely service.

4.02

0.92

Always

The staff members are both able and willing to give you information about menu

3.96

0.90

Always

The staff listen to the guest request, question and concerns attentively

4.08

0.93

Always

Overall
4.06

0.87

Always

Customer expectations of excellent service are constantly changing, which serves as an opportunity for
all restaurants to provide an exceptional experience for future development. A customer-centric
strategy is of great importance for any restaurant industry because customer perception depends on the
service process used by restaurant employees and companies (Ingerson & Kim, 2016).

Price has traditionally been described as a key factor in customer satisfaction as it reflects the value of a
given service Han et al (2020). In addition, Malik et al. (2020). discovered that price perception is a
predictor of customer satisfaction and loyalty. In order to gain a consumer's loyalty to a product or
service, business managers must first identify consumers' perceived expectations and then match those
expectations with perceived product quality Yeo et al (2017).

Table 7. Level of Customer Satisfaction

Indicators Mean Standard Qualitative

Deviation Description

1. Physical Environment 4.31 0.71

2. Responsiveness 4.06 0.87

Overall 4.19 0.79

As you can see in the Table 7, out of all items, Physical Environment got the highest mean of 4.31 which
means a descriptive equivalent is always. This means that the satisfaction of the customer is always
manifested. Price has traditionally been described as a key factor in customer satisfaction as it reflects
the value of a given service Han et al (2020). In addition, Malik et al. (2020). discovered that price
perception is a predictor of customer satisfaction and loyalty. In order to gain a consumer's loyalty to a
product or service, business managers must first identify consumers' perceived expectations and then
match those expectations with perceived product quality Yeo et al (2017). On the on the hand,
Customer Satisfaction item got the lowest mean of 4.19 which has a descriptive equivalent is always.
Relationship between Customer Loyalty and Customer Satisfaction

Table 8. Summary on the Relationship on Customer Loyalty and Customer Satisfaction

Variables Mean r-value p-value Decision

Customer Loyalty 4.34

Customer Satisfaction 4.19

0.511 0.000

Ho: Rejected

Table 8 shows the correlation between Customer Loyalty and Customer Satisfaction. It can be seen from
the result the positive correlation. The result implies that the customer loyalty has correction with the
level of Customer Satisfaction.

To test relationship, in the customer loyalty and customer satisfaction 0.05 level of significant. Data
reveals that the r-value 0.511 and the p-valueis 0.000 which is lesser that 0.05 this allows the researcher
to reject the hypothesis stating that there is significant relationship between the customer loyalty and
customer satisfaction. The result implies that the level of Customer Loyalty and Customer Satisfactions.

The findings are in conformity to the theory of Peng et al. (2017) that individuals' positive and negative
emotions mediate the relationship between restaurant stimuli such as service staff, food quality,
atmosphere, and customer loyalty. Consistent with this existing work, we argue that identity-based
attachment and location-based attachment generate emotional attachment and consequently customer
satisfaction.

Ortegon et al. (2019), a natural environment means that every part of a restaurant brand is made of
natural materials and the atmosphere of the restaurant is natural. Individual perception of a natural
environment could evoke a positive emotional response and evoke positive attitudes in guests.
Positively and significantly influences the emotional attachment of consumers to the store. Again, they
found that consumers' attachment to a store later leads to their loyalty Jang et al. (2015).

Chapter 4

Summary, Findings, Conclusion and Recommendation

This chapter present the summary of the findings. It also display the conclusion and the
recommendation.

Summary

This study identified the level of Customer Loyalty and Customer Satisfaction of KST. Restaurant
Data Collection was with a sample size of 100 respondents of KST Restaurant. They might be asking
people who are present of the restaurant.

This study adopted quota sampling and descriptive correlation design. Quota Sampling will be done
accommodating only selected respondents. A questionnaire will be used to gather random data for data
collection. To determine the level of each variable , mean was used in finding the significant relationship
between the independent and dependent variable person product moment correlation was used.

Findings

The major findings of the study are the following:

 It was found out that the independent variable which is Customer Satisfaction got s mean 4.19
with a descriptive equivalent is always. This concludes that most customer that order of KST Restaurant
have a high level of Customer Loyalty.

On the other hand, the dependent variable which is customer satisfaction got a mean 4.34 with a
descriptive equivalent of always which means that the numbers of customer being satisfaction of KST
Restaurant is always.

Conclusion

The finding conclusion based on the result of the study:

The level of Customer Loyalty

The level of Customer Satisfaction

The is a significant relationship between the level of Customer Loyalty and level of Customer Satisfaction

Recommendation

Based on the level of Conclusion. The following recommendation are offered:

The level of customer loyalty and satisfaction to uphold and concentrate on food quality standards as
well as the taste, freshness, and standard of the food.

To meet customer needs and make them feel satisfied as well as happy in order to foster loyalty, KST
Restaurant consistently implements a variety of tactics. Therefore, businesses who had a hard time
keeping clients may make more money by keeping these devoted customers.